EADS says Europe needs only one drone

Europe needs to co-operate on the next generation of military drones or it will repeat costly divisions which led to rival combat jets competing for the same orders, aerospace group EADS warned on Sunday.

The warning on the eve of the Paris Air Show follows a decision by Britain and France to push other defense companies into working on an armed drone, which could leave an alternative project in which EADS (EAD.PA) is involved out in the cold.

"We are not pleased by the development that we have two potentially competing projects in Europe, where obviously Europe is not a position to come up with 300 million euros ($425 million) for the next few years to develop one project," Stefan Zoller, head of EADS' defense and security unit Cassidian, said.

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